CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

The overnight repurchase rate for general collateral is 6.50%. For a dealer seeking financing using special collateral, the repurchase rate ______.
A. will be greater than or equal to 6.50%
B. will be less than 6.50%
C. The dealer will not be able to borrow using special collateral.
Explanation: Because special collateral is desirable for other uses, lenders will bid lower repurchase rates to lend to borrowers in possession of special collateral.

User Contributed Comments 1

User Comment
iceluke look up in the readings, yield under risk-free
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